Investing.com -- Shares in Sodexo (EPA:EXHO) fell on Tuesday after the French catering service posted third-quarter sales growth that missed analysts' estimates.
Revenue jumped by 6.8% on an organic basis versus to prior year to 6.07 billion euros in the quarter ended on May 31, below consensus estimates of 7.0%, according to forecasts cited by UBS.
The global catering and facilities management group flagged that it had been hit by weakness in its China operations as well as a notable slowdown in price increases, which contributed to about half of the quarterly organic revenue expansion.
But the group said activity in the third quarter was "in line" with its expectations, leading it to reiterate its annual guidance for organic revenue growth at top end of a range of 6% to 8% and underlying operating profit margin to increase by 30 to 40 basis points at constant rates.
"Our commercial momentum in Food services remains strong, driven by continued first-time outsourcing opportunities, the ramp-up of new operating models and the quality of our branded offers," said Chief Executive Sophie Bellon in a statement.